Korea’s June elections delivered more than just a new government – they unleashed a crypto-friendly administration determined to transform the nation’s financial landscape. With the previous leader currently behind bars, the new government has seized on July’s US GENIUS Act as momentum to accelerate domestic reforms. The result: a legislative sprint between Korea’s two main political parties, each racing to pass competing stablecoin bills that could reshape digital finance. But the stablecoin race is just the beginning. The Token Securities Act, which has garnered bipartisan support, is poised to revolutionize how digital securities are issued and traded in Korea.
The law will update the Electronic Securities Act and the Capital Market Act. Amongst other changes, it will recognize distributed ledgers or blockchains for record keeping.
Several securities incumbents have been working on tokenization for the past couple of years, while platforms launched by startups offering fractional investment opportunities have had to operate within regulatory sandboxes due to legislative gaps. To prepare for these regulatory changes, major financial institutions are quietly testing groundbreaking infrastructure that could transform how securities are traded and owned in Korea.
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